Double Top and Double Bottom formations are the most basic of chart patterns. A Double Top is formed when a high is followed by a decline, which is then followed by a rise that exceeds the previous. A Double Bottom is formed in a similar fashion. As we will see later, most other formations are variations on this simple pattern. Generally, formations that consist of more than 3 vertical columns yield better results.
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Point and Figure Double Top |
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Point and Figure Double Bottom |